The value of Ethereum is just beginning to be discovered, several analysts point out, arguing that the second cryptocurrency on the markets is an asset never seen in the world, with exceptional properties for the creation of true smart money.
Ethereum was created with a very different functionality and value proposition than that of Bitcoin. Although it uses technology Blockchain, which was born with Bitcoin in 2009, Ethereum incorporates a series of elements that greatly differentiate it from the first cryptocurrency successful in the world.
The Ethereum blockchain was born as a digital ecosystem for the development of decentralized applications, known as dApps, which are made possible by smart contract functionality, or smart contracts, which this network allows.
Due to its unique properties and characteristics, in Ethereum it is not only possible to send value to anyone anywhere in the world, as with Bitcoin, but it is also possible to develop an endless number of autonomous and non-objectionable financial protocols governed by code, up to digitalization. and tokenize any asset class, and much more, natively. Given this, Andrew Keys, from DARMA Capital, considers Ethereum to be “the only blockchain on Earth capable of being the substrate of the digital economy”.
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Ethereum, an asset never seen in the world
During his participación at the virtual conference Consensus 2021, organized by CoinDesk, Andrew Keys assured that Ethereum is one of the most important projects that currently exist in the crypto industry, and that since its development to the present, it has become an asset never seen in the world.
For Keys, Ethereum is not only a cryptocurrency, but also a capital asset, a consumable asset and a store of value asset, which despite its current conflicts, related to the energy consumption of mining and the high cost of gas , will become “the substrate of the digital economy.”
Although Keys is also a believer in the potential and bitcoin revolution, as a cryptocurrency that is reinventing the economy, considers that Ethereum could surpass the market capitalization of Bitcoin by 2022. All this based on the value proposition of the cryptocurrency, and its current evolutionary process to overcome its conflicts and problems present.
Ethereum is a few days away from implementing its improvement proposal EIP-1559 to reduce your gas costs and change your commission auction system; In addition, it continues its path towards the transition to Ethereum 2.0Called > , which will completely change the way it currently operates, solving environmental conflicts and boosting its scalability and performance in an unmatched way.
CBDCs as smart money on Ethereum
On the other hand, the Ethereum blockchain is one of those used for the creation and development of completely decentralized, non-censorable, secure and economically self-sustaining applications.
Thanks to its properties, Yao Qian, former head of digital currency development at the People's Bank of China (PBoC) and current director of the Science and Technology Supervision Office of the China Securities Regulatory Commission, noted that CBDCs, digital currencies issued by central banks, should one day operate on networks like Ethereum.
In his view, CBDCs should not be implemented as a digital representation of money issued by central banks, but rather should integrate smart contract functionality to become a much “smarter” and programmable form of money, capable of driving a true transformation in the current financial system. Who made these statements during your participation in the International Finance Forum (IFF) 2021 Spring Conference, held in Beijing, China, on May 29 and 30.
Ethereum and its path to PoS
To date, Ethereum has made significant progress on its path to becoming a more scalable, secure, and energy-efficient blockchain network. Vitalik Buterin, co-founder of Ethereum, noted that the network's transition from the consensus algorithm Proof of Work a Proof of Stake It will solve the environmental conflict that revolves around this chain, due to the energy consumption produced by the network's miners.
La Beacon Chain, which began on December 1, 2020 and is the first phase in the network transition path, is progressing the way developers expected, so the beacon chain will soon begin offering support for a new Ethereum's rich application layer with user accounts, contracts, and transactions, the Ethereum Foundation wrote in a publication recent.
The network developers expect the transition process from Ethereum to Ethereum 2.0 to be completed next year, in 2022, significantly improving the speed, scalability, security and decentralization of the network.
When the transition process is complete, Ethereum will not only offer an environmental solution, guaranteeing lower energy expenditure for its operation and operation, but it will also offer much faster transactions, which will be confirmed in a few seconds and with cheaper commission rates and accessible; a high level of security, both for the blockchain network and its users; and greater decentralization and efficiency.
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